DENVER—Xcel Energy’s request to raise electric rates by $177.4 million is drawing fire from critics of its new coal-fired power plant and consumer advocates.
The Minneapolis-based company says the proposed rate increase would raise the average residential monthly bill by $4.92, or 7.6 percent.
Activist Leslie Glustrom, who has challenged the rate increase, has questioned the need for a new coal-fired power plant near Pueblo. About $110 million of the increase would help cover the plant’s costs.
Meanwhile, the Colorado Office of Consumer Counsel is questioning the use of projected future costs to set rates rather than historic costs. Xcel officials say the rate is based on the most reasonable expenses.
Other opposition centers on costs for the SmartGridCity project in Boulder, which is designed to enable the utility and customers to better manage electric demand over the grid.
Xcel is seeking $11 million for the project in the rate case, but the city of Boulder is concerned about whether there is enough oversight of the project’s finances.
The Colorado Public Utilities Commission is considering the request for the $177.4 million increase.
The PUC staff has recommended a $46 million increase, the Office of Consumer Counsel suggests $68 million, and Colorado Energy Consumers $98 million.
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Information from: The Denver Post,
